The technical selling spree continued in yesterday’s session with many traders liquidating their long positions. Both corn and soybeans were pushed to 10 week lows. However, through the overnight of trade the grain markets have made a corrective bounce. Corn is currently up 6 cents and soybeans are up 5 cents. Today’s session will be important in determining if the markets will be able to hold and stabilize this overnight bounce. If we fail to hold the overnight rebound in prices we’re likely to test the lows again trying to find new buyers as the market is still speculatively long. President Trump intensified the pressure on China to reach a trade deal. He announced yesterday the imposition of an additional 10% tariff on the remaining $300 billion of Chinese goods starting September 1. The trade disputes definitely hurt the demand side of U.S. grain and oilseeds, so reaching a trade deal will prove crucial for our markets. It was expected that a trade deal would be reached by the end of the year, but with the negotiations being pushed back more and more it makes you wonder when it will really happen. Heavy rains fell overnight in CO, OK, and KS. Those same rains are expected to linger for a while and will disperse by tomorrow. Corn Belt action is expected to stay scattered until the 6-10 day time frame and above normal precipitation is expected in the 11-15 day time frame. Temperatures will trend cooler in the northern plains and belt, and trend warmer far south. The weather and any technical indicators will continue to be closely watched leading up to the August report. I would continue to advise producers to put in firm offers with your buyers leading up to the report. The outlook for the report still remains bullish, so being able to capitalize on a sudden run should prove beneficial.
Have a great Friday!